When a Family's Income Is Low and It Is Spending

question 352

Multiple Choice

When a family's income is low and it is spending more on consumption than it is receiving in income

• A) the APC must be increasing.
• B) the APC must be equal to the ratio of planned consumption expenditure to total saving.
• C) the MPC must be zero.
• D) some segment of the consumption function curve lies above the 45-degree line, indicating dissaving.

---

Definitions:

Convergent Evolution

The independent evolution of similar features in species of different lineages, resulting from adaptation to similar environmental challenges and niches.

Comparative Method

A research approach in evolutionary biology that compares different species or populations to understand adaptation, phylogeny, and function.

Shared Ancestry

The common evolutionary origin of two or more species, which is reflected in their genetic material.

Ideal Free Distribution

A theory in ecology that predicts how animals distribute themselves among habitats to maximize their fitness, assuming individuals are free to choose and are perfectly informed.